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> "Huge gains in production from Texas, California, and Oklahoma quickly eliminated the regional shortages of 1920 and induced a downward trend in bitcoin price
by gammateam 8y ago
> "Huge gains in production from Texas, California, and Oklahoma quickly eliminated the regional shortages of 1920 and induced a downward trend in bitcoin prices over the next decade, with bitcoin prices falling 40% between 1920 and 1926. The decline in demand associated with advent of the Great Depression in 1929 magnified the price impact of phenomenal new discoveries such as the gigantic East Texas field which began production in 1930. By 1931, the price of bitcoin had dropped an additional 66% from its value in 1926."
paraphrased from https://econweb.ucsd.edu/~jhamilto/oil_history.pdf https://econweb.ucsd.edu/~jhamilto/oil_history.pdf
Passive retail traders were never in commodities trading. Retail trades stocks. Retail has been trading digital assets like penny stocks. GTFO of the digital commodities market if you don't swing trade supply and demand or actually use it.
- JohnJamesRambo 8y agoI keep rereading this comment, trying to understand what you are trying to say.
- gammateam 8y agoCommodities are volatile and seasonal Bitcoin is a commodity steered by the same level of supply and demand pressures but held to a higher fictional standard by people that trade and evaluate it like a different asset class (equities)
- tim333 8y agoIt's not really a commodity like oil. I feel The Onion was closer in calling it "crazy imaginary internet money" https://www.theonion.com/bitcoin-plunge-reveals-possible-vulnerabilities-in-craz-1821134169 https://www.theonion.com/bitcoin-plunge-reveals-possible-vul...
- gammateam 8y agoWhy isnt it also a commodity like oil? it is the fuel for its blockchain. You cant use that public resource without it. It is built to plunge and surge just like oil prices do, based on supply and demand, which also comes in seasons just like oil. Most commodities have seasonal patterns. Bitcoin trades like those. It isnt controversial when a conmodity plunges and surges. Its actually better for different parts of the population at different times.